How Spanish insurance premiums change with age: natural vs level premium

Short answer: with a natural premium (prima natural) you pay little at first and more each year as you age. With a level premium (prima nivelada) you pay more at first, but it stays much more stable. A mixed premium combines both. Which suits you depends mostly on your age when you start and how long you’ll keep the policy.

Why this choice exists

In Spanish funeral (decesos) and life insurance, the insurer’s risk grows with the insured person’s age. Insurers can spread that cost in two ways: charging it year by year based on your age, or spreading it more evenly over time.

The premium types

Natural: recalculated every year by age. Starts low and keeps rising. The most common, and the one that surprises people when the bill jumps years later.
Level: stays much more stable for many years. You pay more than natural at first, but less later.
Mixed: rises with age up to a point, then stabilises.
Single: pay once and you’re covered. Common at older ages.

Which suits whom

You start young and will keep it for decades → level usually costs less overall.
You need the lowest payment now or aren’t sure how long you’ll keep it → natural gives flexibility.
You want something in between → mixed.
Older age, or you want it fully paid → consider single.

The comparison to ask for

Rather than comparing the first premium, ask for a projection of what you’d pay with each type over 10, 20 and 30 years. You’ll see the real cost and when one type starts to beat the other.

If your bill keeps rising

If you’ve had funeral insurance for years and each renewal costs more, you probably have a natural premium. Before cancelling:

Check exactly what’s covered and whether the sum insured is still right.
Ask for alternatives with another premium type or another insurer.
Consider your current age: switching late may not pay off.

In short

The premium type decides what you pay over the whole life of the policy. Always ask for the long-term projection and choose based on how many years you’ll keep it.

I’ll prepare a comparison across several insurers and show you, with numbers and in English, which premium type suits you.

Frequently asked questions

Which premium type is cheapest?

At first, the natural premium. Over the long term it depends how many years you keep the policy: if you start young and keep it for decades, a level premium usually works out better overall.

Can I switch from natural to level premium?

It depends on the insurer. Some allow it at certain points, others don’t. It’s best decided when you take out the policy.

Why does my funeral insurance go up so much every year?

You most likely have a natural premium, recalculated every year by age. Reviewing alternatives can help stabilise the cost.

Does a single premium make sense?

Often at older ages, or if you want everything paid in one go. Compare the amount with what you’d pay through regular premiums.